West Corp (WSTC) has reported 9.71 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $68.32 million, or $0.80 a share in the quarter, compared with $62.28 million, or $0.74 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $64.53 million, or $0.76 a share compared with $83.60 million or $0.99 a share, a year ago. 

Revenue during the quarter went down marginally by 0.18 percent to $567.38 million from $568.43 million in the previous year period. Gross margin for the quarter contracted 81 basis points over the previous year period to 57.08 percent. Total expenses were 81.90 percent of quarterly revenues, up from 81.53 percent for the same period last year. That has resulted in a contraction of 37 basis points in operating margin to 18.10 percent.

Operating income for the quarter was $102.69 million, compared with $104.97 million in the previous year period.

However, the adjusted operating income for the quarter stood at $132.29 million compared to $131 million in the prior year period. At the same time, adjusted operating margin improved 27 basis points in the quarter to 23.32 percent from 23.05 percent in the last year period.

"West Corporation finished the year with a fourth quarter that was stronger than we expected," said Tom Barker, chairman and chief executive officer. "Our consolidated revenue was down slightly primarily due to a decline in conferencing revenue. However, our four growth businesses UCaaS, Safety Services, Interactive Services and Specialized Agent Services grew 5.5 percent on an organic basis in the fourth quarter. Additionally, we had double-digit growth in free cash flow in the fourth quarter and full year. During the fourth quarter we also made changes to our cost structure that we expect to positively impact our results in 2017 and further strengthen West for the future."

For fiscal year 2017, West Corporation projects revenue to be in the range of $2,286 million to $2,362 million.  It expects net income to be in the range of $175 million to $196 million. The company forecasts adjusted net income to be in the range of $234 million to $255 million, the company projects operating income to be in the range of $413 million to $446 million. The company projects adjusted operating income to be in the range of $500 million to $532 million. It forecasts diluted earnings per share to be in the range of $2.07 to $2.31, the company forecasts diluted earnings per share to be in the range of $2.76 to $3 on adjusted basis.